Apple has announced it is issuing a $1 billion green bond to further its renewable initiatives, reportedly planning to finance projects involving renewable energy resources and energy efficiency, including advancing its goal of achieving a closed-loop supply chain, through which products are made using only renewable resources and recycled material.
The offering comes over a year after Apple issued its first green bond of $1.5 billion - the largest issued by a U.S. corporation - as a response to the 2015 Paris agreement.
It also follows Apple’s announcement two months ago that 96 per cent of its worldwide energy now comes from renewable sources and pledged to reach 100 per cent by getting its supply chain to invest in renewable energy.
Apple said its second green bond is meant to show that businesses are still committed to the goals of the 194-nation accord.
“Leadership from the business community is essential to address the threat of climate change and protect our shared planet,” said Lisa Jackson, Apple's vice president of environment, policy and social initiatives.
Last year, Apple allocated $442 million to 16 different projects from renewable energy to recycling from its first bond offer.
One of the projects it funded was a robotic system called Liam to take apart junked iPhones and recover valuable materials that can be recycled, such as silver and tungsten - an attempt to address criticism that Apple's products are so tightly constructed that their components can be difficult to take apart.
Although green bonds comprise a small fraction of the overall bond market, demand has grown significantly as investors seek lower-carbon investments.
In 2016, $81 billion of green bonds were issued, double the number from 2015, according to the Climate Bonds Initiative, an organization that promotes the use of green bonds.
Governments worldwide are also embracing the use of green bonds as a way to meet the Paris agreement commitments.